Offer and Negotiations: What Sault Ste. Marie Home Sellers Need to Know

It’s About More Than Price

The highest offer isn’t always the best.

You’ll also want to consider:

• The buyer’s financing situation: Is their offer conditional on securing a mortgage, or are they paying in cash?
• The conditions attached: Are they asking for multiple contingencies that could delay the process?
• The closing date: Does it align with your timeline and next steps?

Example 1: If a buyer offers $360,000 but requests a longer closing period, you might negotiate for $365,000 to compensate for the delay.

Example: If a buyer offers $350,000 for your $365,000 listing, you might counter with $360,000 and request a larger deposit to show commitment.

How to Compare Multiple Offers

If you’re fortunate enough to receive multiple offers, it can feel overwhelming.

Here’s how we’ll approach it:

1. Review All Terms: I’ll help you assess not just the price but also the conditions, deposit amount, and closing date.
2. Weigh the Pros and Cons: Each offer will have its strengths and weaknesses. I’ll provide guidance on which aligns best with your goals.
3. Strategize: If appropriate, we can ask the buyers to improve their offers, especially in a competitive situation.

Competing Offers

In a hot real estate market, multiple buyers may make offers on your property at the same time.

This is known as a competing offers situation or a bidding war. Here’s how to handle it:

• Strategy: Your agent will notify all interested buyers of the multiple offers and may request their “best and final” offers.
• Advantages: Competing offers often lead to higher selling prices or better terms for the seller.
• Transparency: Your agent will follow all legal and ethical rules, ensuring a fair process for all parties.

Example: If three buyers submit offers, one may increase their bid significantly to secure the property, leading to a higher sale price for you.

Non-Competing Offers

When there is only one offer on the table, it’s a non-competing situation.

You have more flexibility in negotiating terms with the buyer.

• Negotiation: Work with your agent to counteroffer on price, conditions, or timelines.
• Due Diligence: Carefully review the offer to ensure it aligns with your goals before accepting or countering.

Example: If the buyer offers below your asking price, you might counter with a higher amount while agreeing to their preferred closing date.

Offer Presentations

Offer presentations involve reviewing and discussing submitted offers with your real estate agent.

This process ensures you understand all aspects of each offer.

• Reviewing Key Terms: Look at price, deposit, conditions, and closing date.
• Agent Guidance: Your agent will explain the pros and cons of each offer and recommend a strategy.
• Decision Making: Decide whether to accept, reject, or counter the offer based on your goals.

Example: Your agent may suggest accepting a slightly lower offer with fewer conditions for a quicker and smoother transaction.

Irrevocable Dates

The irrevocable date is the deadline by which the seller must respond to an offer.

This ensures the buyer knows when they can expect a decision.

• Importance: Failing to respond by the irrevocable date means the offer automatically expires.
• Timeline: Irrevocable periods are typically 24-48 hours but may vary based on market conditions.
• Strategic Use: Use the full irrevocable period to review and evaluate offers, especially in competing situations.

Example: If a buyer submits an offer with a 48-hour irrevocable period, you can use this time to consult with your agent and negotiate terms if needed.